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IRCC clarifies that home-based companies can hire foreign workers if the business is real

Oct 7, 2026
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IRCC clarifies that home-based companies can hire foreign workers if the business is real
Immigration, Refugees and Citizenship Canada (IRCC) has published new operational guidance telling officers not to refuse an employer-specific work-permit application simply because the employer’s street address is a private home. The October 7 update notes that more small Canadian firms—and many start-ups—operate fully online or from a spare bedroom. A residential address is therefore treated as just one data point in judging whether a job offer is genuine. Instead of relying on the address, officers must look at four factors: 1) whether the employer is actively engaged in the business, 2) whether the proposed hire matches an actual staffing need, 3) whether the firm can pay the stated wages and respect federal-provincial labour standards, and 4) whether the operation complies with employment and recruitment law. No single factor is determinative; officers have to weigh the whole picture. The guidance gives practical examples. A graphic-design studio that is incorporated, files taxes, keeps contracts and payroll records, and needs an additional designer can pass the test even if it runs out of a condominium. By contrast, a “paper-only” restaurant incorporated at a suburban townhouse but unable to show revenue, kitchen facilities or supplier invoices will fail. The policy also instructs officers to issue a 15-day Procedural Fairness Letter if they have doubts so that the employer can submit more evidence—an important due-process step for multinationals and small businesses alike. For global-mobility managers the takeaway is documentation. Home-based or hybrid Canadian entities that plan to sponsor talent under the International Mobility Program should retain tax filings, business licences, customer invoices, contracts and payroll summaries. They should also be ready to explain how the foreign worker will perform duties remotely or on client sites. The clarification is particularly relevant to tech, consulting, e-commerce and creative sectors, where remote work is now mainstream. Because the policy removes an informal “red flag” that sometimes stalled applications, it should shorten processing for legitimate small employers while making it harder for shell companies that sell fake job offers. Foreign nationals who receive offers from Canadian home-based firms should still verify the company’s registration and ask for written contracts and payroll evidence before accepting.
Source: IRCC.com

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